Tuesday, April 28, 2009

Quote of the Day

Glenn Reynolds in response to the government takeover of GM favoring unions over bondholders (NationalReview):

I think I’ll invest in China, where they respect private property . . . .
While I do enjoy irony, I'm not sure it's apt with the issues surrounding Asia Aluminum (where foreign bondholders look like they're going to get screwed over the domestic shareholders), the government push on its largely government controlled banks to lend and eminent domain issues (but they have those frighteningly enough in the US as well). But maybe it's apt after all - though with the recent bailouts, one thing's clear, China looks like it's headed in the right direction where property rights are concerned and the US is headed the other way. This should be of severe concern to anyone who acknowledges that it's markets, not governments, that create wealth.

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